Aimco Reports Second Quarter Results, Updates Guidance, and Provides Highlights on Recent Activities

Core Viewpoint - Aimco reported a net loss of $(0.43) per share for Q2 2024, primarily due to a non-cash impairment charge related to its investment in IQHQ, while showing growth in revenue and net operating income from its stabilized properties [2][3][29]. Financial Results and Highlights - Aimco's revenue for Q2 2024 was $38.7 million, a 4.6% increase year-over-year, with net operating income (NOI) rising 4.1% to $26.5 million [2][8]. - Average monthly revenue per apartment home increased by 4.4% to $2,392, with effective rents on all leases up 3.5% compared to previous leases [2][8]. - Expenses rose by 5.7% year-over-year, mainly due to higher real estate taxes [8]. CEO Commentary - The CEO highlighted solid performance and progress towards 2024 objectives, with NOI growth of 4.1% year-over-year and a leasing renewal rate of nearly 66% [3][4]. - Full-year guidance was revised to expect revenue growth between 3.25% and 3.75% and NOI growth of 1.50% to 2.75% [3][4]. Operating Property Results - Average daily occupancy for stabilized properties was 96.3%, with a slight increase from the previous year [8]. - Year-to-date effective rents were 3.7% higher than previous leases, with a median annual household income of new residents at $126,000, resulting in a rent-to-income ratio of 20.0% [8]. Development and Redevelopment - Aimco has two multifamily development projects under construction and a pipeline of future opportunities totaling approximately 13 million gross square feet [9][10]. - As of July 31, 2024, Aimco has delivered all 689 apartment homes at Upton Place, with 240 units leased at rates ahead of projections [10]. Investment & Disposition Activity - Aimco is actively marketing three assets for sale in the Miami market, including The Brickell Assemblage and The Hamilton [11]. - The company aims to unlock value from its assets and prioritize returning capital to stockholders [5][11]. Balance Sheet and Financing Activity - As of June 30, 2024, Aimco had access to $259.4 million in liquidity, including $88.5 million in cash [12]. - Aimco's net leverage was reported at $1.09 billion, with 100% of total debt either fixed rate or hedged [12][14]. Public Market Equity - In Q2 2024, Aimco repurchased 3.0 million shares at an average price of $8.02 per share, totaling 4.2 million shares repurchased year-to-date at an average cost of $7.93 [13][14].